Posted by on Jul 6, 2019 in Articles & Advice, Blog, Columns, Featured |

Image Credit: Alex Nabaum


By Jason Zweig  |  July 5, 2019 11:00 am ET


Share buybacks are as American as mom, apple pie and hot dogs on the Fourth of July.

You’d never guess that given the many politicians on both the left and the right who say share repurchases are a newfangled, evil spawn of deregulation. Buybacks, argue their critics, barely existed before the Securities and Exchange Commission changed a rule in 1982 and unleashed a multi-trillion-dollar torrent—enriching fat-cat investors, starving workers and stunting the long-term prospects of the companies buying back all those shares.

To call this argument baloney would be an insult to cold cuts. When American companies began repurchasing shares from their investors, Alexander Hamilton was treasury secretary—and corporations have been buying back stock, often a little and sometimes a lot, ever since….


To read the rest of the column:


For further reading:


Benjamin Graham, The Intelligent Investor

Jason Zweig, The Devil’s Financial Dictionary

Jason Zweig, Your Money and Your Brain

Jason Zweig, The Little Book of Safe Money


Articles and other resources:

Cliff Asness et al., “Buyback Derangement Syndrome

Alex Edmans, “The Case for Share Buybacks

Michael J. Mauboussin, “Share Repurchase from All Angles

Michael J. Mauboussin and Dan Callahan, “Disbursing Cash to Shareholders

FDR Weighs In on the Buyback Debate

Think Before You Fish for Bargains in Chinese Stocks

At Long Last, Could the Dividend Revolution Be Here?

Will Stock Buybacks Bite Back?